LIC’s New Jeevan Shanti Plan: Ensuring Post-Retirement Peace

Everyone wishes to avoid financial difficulties after retirement. Therefore, most individuals save a portion of their earnings and try to invest it in a way that ensures a regular income in the future, especially after retirement. To provide financial security to individuals post-retirement, the country's largest insurance company, Life Insurance Corporation of India (LIC)’s New Jeevan Shanti Plan, offers several financial benefits to address the future needs of today’s working class.

The LIC New Jeevan Shanti Plan is a single premium plan where one needs to invest once, and it guarantees a lifetime pension after retirement. The plan offers guaranteed returns and comes with two annuity options. The plan is available both online and offline, giving policyholders the flexibility to buy it at their convenience.

Any individual aged between 30 and 79 years can purchase this policy. If the policyholder/s is not satisfied with the policy after purchase, s/he can surrender it at any time. A minimum investment of ?1.5 lakh is required for this plan, with no upper limit on the maximum purchase price. An investment of ?1.5 lakh in this plan will provide an annual pension of ?1,00,000 per year for life.

Freedom of choosing single or joint plan

The plan offers two investment options. The first is the Deferred Annuity for Single Life, and the second is the Deferred Annuity for Joint Life. If one invests in the Deferred Annuity for a Single Life plan, s/he will receive a fixed pension amount after the deferment period, and in the event of their death, the invested amount will be returned to the nominee.

If the policyholder invests in the 'Deferred Annuity for Joint Life' plan, they will start receiving the pension after the deferment period. Upon the policyholder’s death, the person named in the joint plan will continue to receive a lifetime pension. In this option, the invested amount is returned to the nominee only after the death of both individuals included in the joint life plan. One can choose to receive the pension annually, semi-annually, quarterly, or monthly.

Benefits along with pension

In addition to a guaranteed pension, LIC’s New Jeevan Shanti Plan offers other benefits, including death cover. This means that if the policyholder passes away during the policy term, the entire amount accumulated in the account is given to the nominee. Another unique feature of this plan is that it can be surrendered at any time.

In the event of death, the policy ceases immediately. If the policyholder dies during the guaranteed period, the nominee receives the annuity amount until the end. If the policyholder dies after the guaranteed period, the policy ceases immediately. If the primary policyholder dies, 50% of the annuity amount is paid to the surviving secondary policyholder. The plan also provides 100% payment for the chosen payment mode, and the last survivor's death results in immediate annuity payments.